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Bank Earnings:Historical Results/2022 Q4: Difference between revisions
Bank Earnings:Historical Results/2022 Q4 (view source)
Revision as of 21:45, 13 January 2023
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https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/earnings/fourth-quarter-2022-earnings.pdf | https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/earnings/fourth-quarter-2022-earnings.pdf | ||
https://www.fool.com/earnings/call-transcripts/2023/01/13/jpmorgan-chase-jpm-q4-2022-earnings-call-transcrip/ | |||
https://seekingalpha.com/article/4569826-bank-of-america-corporation-bac-q4-2022-earnings-call-transcript | |||
</ref>. | </ref>. | ||
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|Revenue: $35.57 billion | |Revenue: $35.57 billion | ||
Earnings: $3.57 per share | Earnings: $3.57 per share | ||
| | |CFO Jeremy Barnum : "The net reserve build of 1.4 billion was driven by updates to the firm's macroeconomic outlook, which now reflects a mild recession in the central case." | ||
CEO Jamie Dimon said: “The U.S. economy currently remains strong with consumers still | CEO Jamie Dimon said: “The U.S. economy currently remains strong with consumers still | ||
spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.” | spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.” | ||
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|Bank: Even though the credit loss provision increased by $1.6 billion to $1.1 billion compared to the same quarter in 2021, the net charge-offs was lower than the pre-pandemic levels. | |Bank: Even though the credit loss provision increased by $1.6 billion to $1.1 billion compared to the same quarter in 2021, the net charge-offs was lower than the pre-pandemic levels. | ||
CEO Brian Moynihan said: “We ended the year on a strong note growing earnings year over year in the 4th quarter in an increasingly slowing economic environment." | CEO Brian Moynihan said: “We ended the year on a strong note growing earnings year over year in the 4th quarter in an increasingly slowing economic environment." | ||
CEO Brian Moynihan said in conference call: "our baseline scenario contemplates a mild recession." | |||
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|Citigroup | |Citigroup | ||
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Scharf added: “As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.” | Scharf added: “As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.” | ||
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=== Assessment of the banks earning session === | |||
The earnings results from the four major banks above were mixed. Some reported better-than-expected earning results, while others, such as Wells Fargo, were slapped with disappointing results. But one thing was clear: The US economy is drifting towards a recession this year. This was showcased by the huge loss provisions put aside by the banks. However, these bank executives' comments indicate that the recession is likely to be mild. | |||